Growth in loans to households and businesses continued in December. Average mortgage rates rise to 3.37%

Loans to businesses and households grew by 2.3% year-on-year in December 2025, accelerating from November (+2.1%), when loans to households grew by 2.3% and those to businesses by 1.8%. For households, this is the twelfth consecutive month in which an increase was recorded, and for businesses, it is the sixth consecutive month in which loans grew. The figure, highlights the Monthly Report of the Abi (January 2026) therefore confirms that the recovery is not stopping and is continuing. There is, however, a slight increase in rates.

As regards interest rates on bank loans, on the other hand, the average rate on total loans (i.e. taken out over the years) remained unchanged at 3.97% in December, while the average rate on new home purchase transactions (3.37% vs. 3.30% in the previous month; 4.42% in December 2023) and the average rate on new business loan transactions (3.64% vs. 3.52% in the previous month; 5.45% in December 2023) rose slightly.

In November 2025, net impaired loans (i.e. the total of non-performing loans, probable defaults and exposures past due and/or in arrears calculated net of write-downs and provisions already made by banks) amounted to EUR 29.7 billion, down from EUR 30.1 billion in June 2025 (31.3 billion in December 2024). Compared to their peak level, 196.3 billion reached in 2015, they were down by about 167 billion. In November 2025, net impaired loans accounted for 1.42% of total loans. This ratio was lower than in June 2025 (1.46%; 1.51% in December 2024; 9.8% in December 2015).